Schedule FA — reporting foreign assets in an Indian return: how much of this can I do myself?
Some of it, yes — and we will say so on the call if that is the honest answer. The parts that are worth paying for are the ones where a missed election, a missed deadline or an unverified threshold costs more than the fee: disclosure sits in a dedicated schedule of the return and is tested against information India receives automatically from foreign institutions.
What if I have already filed and got it wrong?
That is a common starting point. We re-derive the position, identify whether an amendment or a disclosure route is the right vehicle, and tell you which one preserves the relief that is still available. The order matters more than the speed.
How long will it take?
It depends on the documents rather than on us. Once the pack is complete most filings turn around inside a fortnight; anything that needs a certificate from a tax authority runs on that authority's timetable, which we tell you at the start rather than at the end.
Who has to report foreign assets on an Indian tax return?
An individual who is an ordinarily resident taxpayer in India and holds assets outside the country, such as foreign bank accounts, investments, or interests in a foreign entity, is generally required to disclose those holdings as part of their Indian tax return. Non-residents and those not ordinarily resident are treated differently under this requirement. We confirm a client's residency category first, since that determines whether the disclosure obligation applies at all.
What kinds of foreign holdings need to appear on that disclosure?
The disclosure generally covers foreign bank accounts, foreign investment holdings, interests in foreign entities, and certain other foreign financial interests held by an ordinarily resident taxpayer, even where those holdings generate no Indian-source income. The requirement is about the existence of the asset, not just income from it. We review a client's full asset list against the categories the disclosure covers rather than only the accounts they think of as significant.
What happens if foreign assets are left off an Indian return?
Omitting a foreign asset from the required disclosure can expose the taxpayer to penalties that apply independently of any tax actually owed on the asset, because the obligation is a reporting one rather than purely a tax one. Authorities have also increased their ability to cross-check foreign holdings through information-sharing arrangements between countries. We review prior filings for gaps in this disclosure as part of any new engagement with a resident client who holds assets abroad.
What happens if I have not filed for several years?
Missed years are handled as one package, not one at a time, because the route chosen for the first year determines the relief available for the rest. Each country has a disclosure or relief programme with its own conditions, and entering the right one — before the authority contacts you — is usually what keeps penalties down. Filing quietly outside a programme forfeits that protection. See catching up on missed returns.
Do NRIs pay tax on money sent to India?
Sending your own funds to India is a transfer of capital, not income, so the remittance itself is not taxed. What is taxable is income the money then earns in India — interest, rent, capital gains — under the rules for the account type it sits in. Sending money out of India is the direction that needs certification before the bank will act. See NRE, NRO and FCNR accounts.
